Apple Lossless Audio CODEC (ALAC), will invest huge sums in the production of films, TV series and online shows, analysts being of the opinion that until 2022 the American company will allocate 4.2 billion dollars annually for this. Apple will produce all this content for distribution through Apple Music, the American company having very ambitious plans to become a serious competitor for Netflix, Hulu, or Amazon.
Apple will invest $4.2 billion annually beginning in 2022, but until then it will invest over $1 billion annually to create such content for Apple Music subscribers. However, despite the large investments, what Apple will pay will pale in comparison to the investments of Netflix and Amazon, who will pay between 6.8 billion and 8.3 billion dollars annually to produce original content.
Apple will invest huge sums in the production of films and TV series
Apple will invest 1 billion dollars in 2017 to create original content for Apple Music, 8 times less than Netflix, but the amount will increase slightly in 2018, but not enough. Amazon spends 4.5 billion dollars in 2017 for the same purpose, more than 4 times more than the Apple company, but those from Cupertino are just at the beginning with the video on demand service in Apple Music.
"Apple should be able to quickly expand their sub base given they have a running start with just over 30 million Apple Music subs that will have access to the video offering for the same $10 per month."
Apple will also rethink the image of Apple Music in the next 2-3 years to make it clear that the service has available not only music, but also movies or TV series for customers. The problem is that Apple needs to increase its user base of the service to be able to support the investments in original content, so it remains to be seen if things will evolve as analysts are predicting at the moment.
